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Background. Change 2 to TEGL 12-97 transmitted performance standards worksheets used to apply the optional Department of Labor adjustment methodology to derive SDA-specific performance standards. Change 3 to this TEGL was issued to provide corrected worksheets after errors were discovered in two of the adjustment factors. Change 4 provides updated economic data for Service Delivery Areas (SDAs) in accordance with current configurations. SDA configurations changed in some States to the extent that prior year's SDA groupings are no longer accurate. The number of economic adjustment factors considered in the model has dropped from seven to six, as reflected in the updated economic data. The population density variable was dropped from the model in accordance with requests from users. Economic data provided here are consistent with the current performance standards worksheets. Action Required. State liaisons are requested to distribute this Change 4 to appropriate officials within the State who need such information, especially those States which have changed SDA configurations for PY 1998.

To preserve the formatting of this document, it has been converted to PDF (Portable Document Format) to retain its original layout.

To preserve the formatting of this document, it has been converted to PDF (Portable Document Format) to retain its original layout.

To preserve the formatting of this document, it has been converted to PDF (Portable Document Format) to retain its original layout.

To preserve the formatting of this document, it has been converted to PDF (Portable Document Format) to retain its original layout. Click on the link below to view, save, or print out the document.

Authorities and References: Balanced Budget Act of 1997 (Pub. L. 105-33) (amending Title IV-A of the Social Security Act); the Non-citizen Benefit Clarification and Other Technical Amendments Act of 1998 (Pub. L. 105-306); and the Welfare-to-Work Interim Final Rule, 20 CFR Part 645 (published at 62 FR 61588 (Nov. 18, 1997)). Background: The Balanced Budget Act of 1997 authorizes the Department of Labor to provide WtW grants to public and private entities in States and local communities for transitional employment assistance to move hard-to- employ Temporary Assistance to Needy Families (TANF) recipients with significant employment barriers and certain non-custodial parents into unsubsidized jobs. Seventy-five percent of WtW funds (less small set- asides for specific statutory purposes) are available to States in amounts based on the statutory formula set forth in Section 403(a)(5)(A)(v) of the Social Security Act. A State is required to allocate at least 85 percent of the formula funds among the Service Delivery Areas (SDAs) in the State and may retain up to 15 percent of the funds for WtW projects that focus on helping long-term welfare recipients enter unsubsidized employment. At Section 403(a)(5)(A)(iv)(II), the statute originally provided that a State receiving formula funds must obligate all funds allotted to it by the end of the fiscal year in which those funds were appropriated. Any funds not obligated would be added to the amount to be allotted by formula to States in the subsequent fiscal year. This provision had the effect of requiring States to obligate the entire formula allotment each fiscal year or face the consequence of losing any unobligated funds. States fulfilled the obligation requirement for the majority of the funds when they allocated the 85 percent funds to SDAs. However, in States that have only one SDA, which is usually an agency of the State government that also serves as the grant recipient, the obligation of these funds presented particular difficulties. In addition, the provision also required States to fully obligate the 15 percent of funds reserved for special projects. This requirement generally conflicts with other authority provided in the Social Security Act allowing funds to be expended over a three-year period. Technical Amendment Affecting the Obligation of Funds: On October 28, 1998, President Clinton signed into law the Non-citizen Benefit Clarification and Other Technical Amendments Act of 1998 (Pub. L. 105-306). The technical amendment harmonizes the obligation requirement and the three-year expenditure provision. It also reiterates that States, excluding single SDA States, are required to expeditiously allocate the 85 percent of the formula funds among the SDAs in the State; and that these formula grant funds must be allocated by the end of the fiscal year in which the funds were appropriated. The requirement to obligate funds by the end of the fiscal year does not apply to the 15 percent of funds reserved by the States for special projects or to the funds that are available to single SDA States. However, the provision would continue to require States to expeditiously allocate formula funds among the SDAs in the State. Retroactivity: The technical amendment is retroactive to the date of the passage of the Balanced Budget Act, which was signed into law August 5, 1997. Action Required: States should provide this guidance to appropriate staff.

References: a. Training and Employment Guidance Letter (TEGL) No. 7-95, Job Training Partnership Act (JTPA) Intertitle Transfer of Funds. b. TEGL No. 3-97, JTPA Allotment for PY and CY 1998 and Wagner-Peyser Act Preliminary Estimates for 1998. c. TEGL No. 4-97, Program Guidance and Allocations for CY 98 Summer Youth Employment and Training Program (SYETP). d. TEGL No. 2-98, Instructions for Title II JTPA Quarterly Financial Report. e. Training and Employment Information Notice (TEIN) No. 14-93, Change 2, Notification of the Office of Management and Budget=s (OMB) Approval of Revision and Extension of the Worker Adjustment Formula Financial Report, ETA 9041. f. TEIN No. 39-97, Annual Reporting Requirements for JTPA Title II-A/C Service Delivery Area (SDA) Programs. g. DOL Appropriation Act of 1997, P.L. 104-28; the 1998 Appropriation Act, P.L. 105-78; and 1999 Appropriation Act, P.L. 105-277. Background: TEGL No. 7-95, dated July 31, 1996, provided guidance on the use of intertitle transfers. Since that time, further legislative actions have extended the authority for such transfers. Transfer Authority: The attached table from TEGL No. 7-95 is updated to reflect intertitle transfer authority through PY 1999, based on the DOL appropriation laws for FY 1997 (P.L. 104-28), FY 1998 (P.L. 105-78) and FY 1999 (P.L. 105- 277). Transfer authority for FY 1998/PY 1998 and PY 1999 is the same as it was for PY 1997/FY 1997. Service delivery areas (SDAs) and sub-state areas (SSA), with the approval of the Governor, may transfer up to 100 percent of the funds for Titles II-B and II-C between the two programs; and they have the authority to transfer up to 20 percent between Titles II-A and III. It should be noted for Program Year 1999, funds for both the Title II-B Summer Youth program and the Title II-C year-round Youth Training Grants are available for obligation on April 1, 1999. Thus, the Summer Youth program is no longer on a fiscal year period. Transfer authority remains the same, i.e., up to 100 percent of the funds can be transferred between the two programs. Further guidance on the use of the remaining JTPA funds after PY 1999 under the Workforce Investment Act will be provided at a later date. Question 13 in TEGL No. 7-95 dealt with the impact of intertitle transfers in excess of 20 percent on National Reserve Account (NRA) grant requests. With the start of PY 1997, the maximum transfer between Titles II-A and III is 20 percent of the applicable sub-state formula allocation; therefore, this policy is no longer applicable. Reporting: The JTPA Title II Quarterly Status Report (JQSR) was revised to report on intertitle transfers between Titles II-A and III. Line 37 of the JQSR was added for Titles II-A and III transfers. Instructions for the above was provided in TEGL No. 2-98 dated July 28, 1998. The Worker Adjustment Formula Financial Report was also changed to report intertitle transfers with the addition of Line 10a to report on transfers. Guidance on Title III reporting was provided in TEIN No. 14-93, Change 2. Action: State JTPA Liaisons are requested to distribute this information to all SDAs and sub-state areas.

Reference: Training and Employment Guidance Letter (TEGL) No. 7-98 dated October 29, 1998. Background: TEGL No. 7-98 informed States of the availability of Title III demonstration funds for incumbent worker system building at the State level for PY 1998. Authorization effective July 1, 1998, allows for the use of Secretary=s JTPA Title III Discretionary funds under demonstration authority for incumbent worker training. The projects funded by the Department would be grants with a maximum period of performance of 12 months, not to exceed $50,000 each, with a total not to exceed $2,600,000. Submission of State Applications: It has come to the attention of the National Office that additional time is needed by the States to prepare applications for these funds. States= Incumbent Worker System Building Demonstration grant applications should be submitted as soon as possible, but not later than December 31, 1998, an extension of the previous deadline of December 15, 1998. The applications, including an SF 424, Application for Federal Assistance and SF 424A, Budget Information form, should be submitted to the appropriate Regional Office, with a copy sent at the same time to: Janice E. Perry, Grant Officer Attn: Incumbent Worker System Building Demonstration Plan Employment and Training Administration U.S. Department of Labor, Room S4203 200 Constitution Avenue, N.W. Washington, D.C. 20210.